Skip to content
Fresno: (559) 549-5638Palm Desert: (760) 304-1775
Search:
Search
Supreme Solar & Electric
Go Solar, Go Supreme!
Supreme Solar & Electric
  • About
    • About Supreme Solar
    • Our Team
      • Michael Sandoval
    • Testimonials
    • Supreme Referral Program
    • Warranty
  • Solar Services
    • Supreme Services
    • Residential Solar
    • Solar Patios
    • Ground Mount Solar
    • Solar Battery
    • Whole Home Generators
    • Solar Panel Cleaning Services
    • Critter Guard
    • Solar Monitoring
    • Residential Roofing Services
  • Installs
  • Resources
    • Solar Blog
    • Solar FAQ’s
  • Pricing
  • Contact
    • Get A Quote
    • Locations
Fresno: (559) 549-5638Palm Desert: (760) 304-1775GET A QUOTE
  • Home
  • Solar Services
    • Supreme Services
    • Residential Solar
    • Solar Battery
    • Solar Patios
    • Whole Home Generators
    • Solar Panel Cleaning Services
    • Critter Guard
    • Solar Monitoring
    • Residential Roofing Services
  • About
    • About Supreme Solar
    • Our Team
    • Testimonials
    • Referral Program
    • Warranty
  • Installs
  • Solar Energy Resource Center
    • Solar Blog
    • Solar FAQ’s
  • Contact
    • Get A Quote
    • Locations

Solar 101: What is Net Metering?

You are here:
  1. Home
  2. Solar 101
  3. How solar works
  4. Solar 101: What is Net…

Solar Learning Center

    • Electricity Savings
    • Increased Home Value
    • Gain Energy Independence
    • Overview
    • System Design
    • Permitting
    • Installation
    • Inspection
    • Utility Approval
    • Activate Your System
    • NEM 3.0
    • How Solar Works
    • Choosing A Contractor
    • Quoting Process
    • Utility Rates & Requirements
    • Key Terms
    • Tips & Tricks
    • Solar Pro's and Con's
    • Energy Production
    • System Monitoring
    • Panel Cleaning
    • System Maintenance
    • Troubleshooting
    • Payment Options
    • Solar Loans
    • Solar PPA
    • Tax Credit
    • Product Reviews
    • Solar Batteries
    • Inverters
    • Solar Panels
    • Mounting & Racking System
    • 5 Star Service
    • Other Home Services
    • Testimonials
    • Warranties



What is Net Metering?

Understanding Solar System Operation and Net Metering

In this comprehensive guide, we will delve into the fascinating world of solar energy, focusing on the operation of solar systems and the concept of net metering. By gaining a deeper understanding of these topics, you will be better equipped to make informed decisions about harnessing the power of the sun and maximizing your savings. So, let’s embark on this enlightening journey together!

Solar System Operation: Capturing the Power of the Sun

Solar energy is the clean, renewable energy derived from sunlight. At the heart of solar energy systems are solar panels installed on the roof or in open spaces that absorb sunlight and convert it into usable electricity. Here’s a breakdown of how solar systems operate:

  1. Power Generation: Solar panels, made up of photovoltaic (PV) cells, generate electricity when exposed to sunlight. These cells contain semiconductors that convert solar energy into direct current (DC) electricity.
  2. Power Conversion: To make the electricity generated by solar panels compatible with the alternating current (AC) used in homes and businesses, an inverter is employed. The inverter converts the DC electricity into AC electricity, making it suitable for powering appliances.
  3. Electrical Panel and Appliance Usage: The AC electricity produced by the inverter is channeled to the electrical panel, also known as the breaker box. The electrical panel distributes the electricity to various appliances and devices in the house. The power is prioritized to meet the immediate needs of the appliances in use, such as refrigerators, lights, and air conditioners.
  4. Excess Power and Utility Connection: If the solar system generates more electricity than is currently required by the appliances, the surplus power is sent back to the utility grid through a bidirectional meter. The utility company measures the amount of excess power and provides credits to the customer for the electricity contributed to the grid.

NEM: Harnessing the Power of Exchange

Net metering is a crucial aspect of solar energy systems that allows customers to benefit from their surplus energy production. Here’s a closer look at how net metering works:

  1. Definition of Net Metering: Net metering is a billing mechanism that enables solar system owners to receive credits for the excess electricity they generate and send back to the grid. It allows for a seamless exchange of energy between the customer’s solar system and the utility company.
  2. Utilizing Excess Credits: The excess credits accumulated during the daytime when solar production exceeds consumption can be utilized during periods of high energy usage or at night when the solar system is not producing electricity. This ability to offset energy consumption from the grid helps customers save on their electricity bills and maximize their solar investment.
  3. Billing and Balancing: Customers receive a monthly bill from the utility company that reflects their net energy consumption. Net energy consumption is the difference between the electricity consumed from the grid and the excess electricity generated and sent back to the grid. If the solar system produces more electricity than consumed, customers receive a credit for the surplus energy. Conversely, if the system produces less electricity than consumed, customers pay the difference to the utility company.
  4. Achieving Balance: To ensure a favorable outcome in the annual net metering cycle, it is recommended to size solar systems to offset between 100% and 120% of a customer’s energy consumption. This strategy takes into account the potential increase in energy usage that may occur when transitioning to solar power, providing a buffer and optimizing savings.

Net Metering Point and Relevant Period

  1. Annual Cycle and Permission to Operate: The annual net metering cycle commences when the customer’s solar system receives permission to operate. This permission is granted by the utility company, usually marked by an email titled “Permission to Operate.” The date of this email serves as the starting point for the customer’s annual net metering cycle, typically in June.
  2. Monthly Statements: Customers receive monthly statements from the utility company that outline their energy generation, consumption, and net surplus or deficit. These statements offer valuable insights into their energy usage patterns and the effectiveness of their solar systems. The information from each month’s statement carries over to the next, ultimately shaping the balance or credit at the end of the annual cycle.

Embrace the Power of Solar Energy and Net Metering

Congratulations! You now have a comprehensive understanding of how solar systems operate and the benefits of net metering. By harnessing the power of the sun and utilizing net metering, you can significantly reduce your dependence on traditional energy sources and save money on your electricity bills. Supreme Solars is here to guide you through the process of transitioning to solar energy, helping you unlock a greener and more sustainable future.

Remember, the journey to solar energy begins with a simple step – reaching out to our experienced team at Supreme Solars. Together, we can design and install a custom solar system tailored to your energy needs, ensuring maximum efficiency and savings. Join the solar revolution today and experience the incredible benefits of solar energy and net metering firsthand!

Contact Supreme Solars today for a personalized solar consultation and take the first step toward a brighter, cleaner future!

Browse Related Articles

  • Do You Need a Battery with Your Solar System? A Comprehensive Guide for Californians

GO SOLAR. GO SUPREME.

Break the grip of greedy utilities and power your home on your terms.

Quote

Get a custom design & quote.

Connect

Connect with our team.

Schedule

Book a call.
Categories: How solar works, Key Terms, Solar 101June 19, 2023

Related Posts

How to get started with solar - a couple with a youg daughter stand before their house with solar panels on the roof and hold a model of a house with solar panels
How to Get Started with Solar
April 11, 2025
How to Choose the Right Solar Battery for Your Home: two solar batteries mounted on a garage wall.
How to Choose the Right Solar Battery for Your Home
March 21, 2025
What is Critter Guard and How Does It Work
What is Critter Guard and How Does It Work?
March 14, 2025
Why is it a Good Idea to Combine Solar Panels With a Generator? A family sits inside a cozy home at night.
Why is it a Good Idea to Combine Solar Panels With a Generator?
February 21, 2025
FRESNO

4277 W Richert Ave.
Fresno, CA 93722
(559) 549-5638

PALM DESERT

41841 Beacon Hill
Suite C
Palm Desert, CA 92211
(760) 304-1775

CSLB#1076925

Find us on:

Facebook page opens in new windowYouTube page opens in new windowInstagram page opens in new windowMail page opens in new window
SERVICES
  • Supreme Services
  • Residential Solar
  • Solar Battery
  • Solar Patios
  • Whole Home Generators
  • Critter Guard
  • Solar Panel Cleaning Services
  • Solar Monitoring
  • Residential Roofing Services
QUICK LINKS
  • Get A Quote
  • Solar Energy Resource Center
  • Solar FAQ’s
  • Testimonials
  • Our Team
  • Supreme Referral Program
  • Warranty
Supreme Solar BBB Business Review
© 2025 Supreme Solar & Electric. All Rights Reserved. | Website by Tailor Made Marketing.
Go to Top
Testimonials

Mohamed and Steve were amazing! They were able to squeeze in an appointment to install my Tesla wall charger and they did an amazing job. Highly recommend!
Brad Glenn

I referred many of my friend and family over to Mohamed throughout the years. He has always taken great care of them and delivered a great experience. Highly recommend him and his team.
Travis Russell

It has been a pleasure working with Supreme Solar. We had great conversations prior to proceeding with them and everything was explained, and we knew what to expect when everything was finished. Everything turned out perfect and I couldn’t be happier with the service that was provided. Highly recommend. Thanks again Supreme Solar!
Josh Reiter

Very professional team. I’m very pleased with the service. Felt very comfortable asking any questions and Mohamed made it very easy to understand. Definitely way better experience than my previous solar company.
Ana Jaymalin

I was in the solar business for years before accepting a position as an Energy Manager for a Native Tribe. I still receive inquiries from friends, family, and former customers to advise them on going solar. I have worked with a handful of companies, and Supreme is the best. While they are smaller than other companies, that works in their favor.
Jeremy Roos

Supreme Solar & Electric is simply fantastic! They were professional and swift in installing our new solar panels. Their service was top quality, they communicated clearly about what to expect, and left our home spotlessly clean. Now we’re enjoying the benefits of solar energy. Highly recommended!
Maddie Mooradian
  • How to get started with solar - a couple with a youg daughter stand before their house with solar panels on the roof and hold a model of a house with solar panels
    How to Get Started with Solar
    April 11, 2025
  • Neovolta Battery Review Is It the Best Solar Battery for Your Home
    Neovolta Battery Review: Is It the Best Solar Battery for Your Home?
    April 4, 2025
  • Whats New in the Solar Industry in 2025
    What’s New in the Solar Industry in 2025?
    March 24, 2025